The government and the Oversight Board determination to request a process of debt adjustment under the Title III of PROMESA for the Puerto Rico Electric Power Authority (PREPA) opens the possibility to achieve greater relief than initially expected in the agreement between the public corporation and the bondholders.
The leaders of the private sector and former representatives of consumers in the PREPA Governing Board concur over that matter.
Luis R. Santini Gaudier, former member of the Governing Board, affirmed that the cutback of 15% of the debt proposed in the Restructuring Support Agreement (RSA) was too low to meet the basic objectives that the public corporation should have.
“Title III is more beneficial for consumers. Governments continued with the RSA because they said it brought savings and provided cash, but the right way was Title III and working with the whole debt of PREPA”, he indicated.
Tomas Torres, spokesperson of the Institute for Competitiveness and Sustainable Economy (ICSE-PR), on his part, remarked that this determination of the government and the Board provides for a new beginning for PREPA with more competitive costs that would stimulate the economy.
“It is an opportunity to modernize the electric system and to ensure low costs in a transparent process in the regulatory framework of the Energy Commission”, he said.
Meanwhile, Enid Monge, also former representative of the consumers commented that Title III has more legal resources to promote a complete restructuring of PREPA, which has more than $9,000 million in debts.
Last friday, governor Ricardo Rosselló Nevares asked for a process of debt adjustments under Title III for PREPA to the Board, which authorized it that very same day.